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Tesla Founder Elon Musk Sued For Fraud

The company has been struggling to achieve the ambitious production targets that Musk had publicly outlined.

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Elon Musk, CEO of SpaceX. Wikimedia.
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The Securities and Exchange Commission (S.E.C.) has filed a lawsuit accusing Tesla Inc. founder Elon Musk of committing fraud by making false public statements with the potential to hurt investors, a move that could force him out of the companys leadership.

The lawsuit filed on Thursday in a federal court here seeks to bar Musk from serving as an executive or director of publicly traded companies like Tesla, reports The New York Times.

Such a punishment is one of the most serious remedies the S.E.C. can impose against a corporate executive.

At issue is Musk’s declaration on Twitter last month that he had “funding secured” to buy out the stock of the electric-car maker.

The prospect created a firestorm on social media and in the markets that sent Tesla’s shares soaring.

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Tesla has become the most valuable American carmaker, with its stock worth more than $50 billion. Pixabay

 

The case could lead to a re-evaluation of how companies use Twitter to communicate with the investing public.

The S.E.C. said Musk “knew or was reckless in not knowing” that his statements were false or misleading.

“In truth and in fact, Musk had not even discussed, much less confirmed, key deal terms, including price, with any potential funding source,” it said in its lawsuit.

Musk responded later on Thursday, calling the move “unjustified”.

“This unjustified action by the S.E.C. leaves me deeply saddened and disappointed. I have always taken action in the best interests of truth, transparency and investors. Integrity is the most important value in my life and the facts will show I never compromised this in any way,” the billionaire businessman said in a statement.

Tesla CEO
According to Musk, “two thirds” of Tesla’s current stockholders would be interested in continuing to hold the firm’s shares once it goes private. (VOA)

The S.E.C. approached the Tesla chief with an offer to settle the case, an informed source told The New York Times, but he refused to negotiate, adamant that he had done nothing wrong.

Tesla has become the most valuable American carmaker, with its stock worth more than $50 billion.

But the company’s shares tumbled more than 12 per cent in after-hours trading after the S.E.C. filed its lawsuit.

The lawsuit is the latest in a series of escalating problems for Tesla and Musk.

Also Read: Elon Musk Maybe Sued For ‘Paedo’ Remark

The company has been struggling to achieve the ambitious production targets that Musk had publicly outlined.

He has made a series of unusual public comments or appearances, including an internet interview in which Musk appeared to smoke marijuana. (IANS)

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Samsung Launches Galaxy S4 Tab

Samsung also announced several offers for those who want to buy the flagship tablet.

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Samsung India set to launch Galaxy Tab S4 this week for Rs 60,000. Flickr

Samsung on Thursday launched in India its flagship tablet, Galaxy Tab S4, a new two-in-one Android tablet that comes equipped with Samsung Dex and S Pen for Rs 57,900.

Galaxy Tab S4 sports narrower bezels to fit a 10.5-inch display with Super AMOLED technology, as well as a 16:10 screen ratio.

Powered by a 7,300mAh battery, Galaxy Tab S4 also comes with four speakers tuned by AKG and Dolby Atmos immersive sound technology.

 

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The redesigned S Pen offers an authentic handwriting experience – suitable for drawing, taking notes, and messaging.

 

“Paired with Samsung Dex and S Pen, Galaxy Tab S4 is designed for those who need something portable like a tablet yet capable like a PC,” Aditya Babbar, General Manager, Mobile Business, Samsung India, told reporters here.

Samsung DeX optimises the user experience for work situations and gives what they want from a PC experience — a big screen, a full-size keyboard and a mouse.

In Standalone mode, one can enjoy a PC-like interface even without a monitor or the “Book Cover” Keyboard, Samsung India said.

In Dual mode, users can connect the tablet to a bigger monitor with an HDMI adapter.

The redesigned S Pen offers an authentic handwriting experience – suitable for drawing, taking notes, and messaging.

galaxy samsung
Powered by a 7,300mAh battery, Galaxy Tab S4 also comes with four speakers tuned by AKG and Dolby Atmos immersive sound technology.

Galaxy Tab S4 will be available from Thursday onwards in black and grey colours on Samsung Online Shop and leading offline retail stores, the South Korean tech giant said, adding that it will also be available on Amazon from October 20 onwards.

Samsung also announced several offers for those who want to buy the flagship tablet.

Those with HDFC Bank credit cards will be able to avail an introductory offer that lets consumers get Rs 5,000 cashback on purchase of Galaxy Tab S4.

Also Read: Honor 8X Launches In India

Moreover, Galaxy Tab S4 customers on Jio 4G, would be entitled to get instant cashback of Rs 2,750 on recharging with Rs 198 or Rs 299 plan.

They would also get double data benefits on every recharge for the next four recharges, Samsung India said. (IANS)